Alma Media CMD 2013 Kai Telanne

Welcome to Alma Media CAPITAL MARKETS DAY 2013

Alma Media’s Capital Markets Day 2013

PROGRAMSPEAKERS

Kai Telanne, CEO

Kari Juutilainen, SVP, Alma Regional Media Kari Kivelä, SVP, IL-MediaJ-P Loimovuori, SVP, Kauppalehti GroupRaimo Mäkilä, SVP, Alma MarketplacesMinna Nissinen, SVP, Alma Diverso

Juha Nuutinen, CFO

Kai Telanne, CEO

TOPICMorning coffee

Driving transformation in the media business

Spearheads for growthNewsLifestyleCareerBusiness

Coffee & Alma Expo

Financial waypoints

General Q&A

Closing remarks

Lunch with management

TIME8.30

9.00

9.45

10.45

11.15

11.45

12.00

12.15

Driving transformation in the media business KAI TELANNE, PRESIDENT AND CEOCAPITAL MARKETS DAY, HELSINKI 27/11/2013

4 Strategic offerings

will make us a winner

BUSINESS

CAREER

LIFESTYLE

NEWS

Our basic beliefs

MISSIONFor individual freedom and well-being.

Sustainable media cultivates traditional journalistic values while integrating broader corporate responsibility in all operations.

Freedom and pluralism of journalism Team playCourage

The most exciting provider of information, service and experiences. The company sets the stage for the future of media.

SUSTAINABLE MEDIA

VISION

VALUES

BUSINESS NEWSLIFESTYLECAREERBUSINESS

LIFESTYLECAREERBUSINESSCAREER

Alma Media today–growing internationally

NET SALES 2012, MEUR FULL-TIME EMPLOYEES 2012

OTHER COUNTRIES

12%OTHER COUNTRIES

30%

FINLAND FINLAND320 1950

Alma Media today–growing internationally

Market dynamics

Fundamental change drivers

ECONOMIC DOWNTURN REDUCES ADVERTISING SPEND AND

MEDIA CONTENT PURCHASES

DIGITALISATION IMPACTS THE MEDIA CONSUMPTION

AND ADVERTISING MIX

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

YTD

%

Ad volumes tied to GDP development

Advertising investments in Finland, y-o-y changeGDP of Finland, y-o-y change Sources: Statistics Finland, Advertisers’ Council, TNS

0%

-5%

-10%

-15%

-20%

5%

10%

15%

+5,1% -16,4%

TOTAL ADVERTISING

2013 YTD ADVERTISING MARKET CHANGE SOURCE: TNS

PRINT ADVERTISINGONLINE ADVERTISING

-9,2%

Weakmarket conditionsprevail

1,4%

-5,2% 7,9% -13,5%

SERVICES REVENUE

AD SALES IN PRINTED NEWSPAPERS

CONTENT SALES AD SALES IN DIGITAL CHANNELS

-5,5%

This impacts business dynamicsCHANGE Q3 2013 VS.Q3 2012

ADVERTISING SALES (COMBINED)

NEWSPAPER

GROUP TOTAL

DIGITAL CONSUMER SERVICES

KAUPPALEHTI GROUP

OTHER

In weak market, cost control is importantCHANGE Q3 2013 VS. Q3 2012

Revenue, change

Total cost, change

EBIT w/o one-off items, change

- 10,5% -5,3% -48,8%

-3,5% -6,4% +23,1%

+3,9% -0,4% +33,2%

+3,9% + 2,7% -33,6%

-6,1% -3,3% -28,8%

Need for cost control and productivity measures is the new normal in media.

More importantly, focus needs to be on innovation, growth and creating value from digital information.

Changes in business dynamics impact key figures.Still, publishing is a solid base..

Segment share of group revenues, revenue and EBIT development. YTD Q3 2013, %

NEWSPAPERS

OTHER

62%

1%

19%

18%DIGITAL CONSUMER SERVICES

KAUPPALEHTI GROUP

Revenue EBIT

Changes in business dynamics impact key figures.Still, publishing is a solid base...for digital growth.

28%

12,9%10,9%

8,8%6%

13,1%15,7%

18%

24,3%

Sources: Statistics Finland, Advertisers’ Council, TNS

105%

20

30 10%

4015%

50

60 20%

25%

30%

70

80

90

20082005

4417,2 4026,5 4935,8 57 78 62

20092006 20102007 2011 2012 YTD Q3 13

Revenue from online businessShare of total revenue

Media is in rapid transition.

We are well prepared and awake.

Investing in digital

Home market investments to support digital growth

Examples 2012 - 2013:- Kauppalehti.fi digital content packages and mobile apps - Iltalehti Plus - Regional paywall and tablet trials - E-kontakti.net acquisition - Additional services for Etuovi.com - Audience targeting toolkit AlmaScope

2012: Alma Media invested 70 mEUR in market-leading recruitment portals in the Baltic states, Czech Republic, Slovakia and Croatia.

2013: Alma Media and Monster partnered in career services across the area. New countries Poland and Hungary.

International investments and partnershipssupport digital growth

20 40 50 80 100 120

Room for growth in digital channels

ONLINE AD MARKET GROWTH

ONLINE AD SPEND PER CAPITA (€)

SOURCE: ADEX BENCHMARK

NORWAY

UK

DENMARK

SWEDEN

NETHERLANDS

GERMANY

SLOVENIA

ROMANIA

FINLAND

IRELAND

CZECH REPUBLIC

POLAND

RUSSIA

SERBIA

SWITZERLAND

5%

-5%

15%

25%

35%

20 40 50 80 100 120

Room for growth in digital channels

ONLINE AD MARKET GROWTH

ONLINE AD SPEND PER CAPITA (€)

SWEDENCZECH REPUBLIC

POLAND FINLAND

NORWAY

UK

DENMARK

NETHERLANDS

GERMANY

ROMANIA

IRELAND

RUSSIA

SERBIA

SWITZERLAND

5%

-5%

15%

25%

35%

SOURCE: ADEX BENCHMARK

Building the future

Strategy 2013

We will accelerate in 2014

DEVELOP PUBLISHINGMultimedia access to news.Securing cash flow from the publishing business.Utilising the new printing facility.

DIGITAL GROWTHFostering organic growth in the service business.Integration of the acquired businesses.

AGILE GROUPStrategic agility.Leadership skills.IT systems.

Mission: BY 2020

DIGITAL

50%

win the trans- formation game.

Moving towards 2020

ALMA MEDIA TODAY

STRATEGIC FOCUS AREAS

ORG

AN

IC B

USI

NES

S D

EVEL

OPM

ENT

M&

A

M&A STRATEGY

ALMA MEDIA TOMORROW

DIGITAL 50 % OF REVENUE BY 2020

The most exciting provider of information, service and experiences. The company sets the stage for the future of media.

BUSINESS

CAREER

LIFESTYLE

NEWS

BUSINESS

CAREER

LIFESTYLE

NEWS

A booming digital services businessA revitalised newspaper business

Digital services and media growing

--

-

DIGITAL 28 % OF REVENUE

Digital services and advertising growing with good profitablity levelsDigital content income picking upPrint revenues suffering from digitalisation and from economic downcycle

-

--

DIGITAL SERVICES

MULTICHANNEL CONTENT

MARKETING SOLUTIONS

RESOURCES & SKILLS

28%

50%

Focus areas 2014

DIGITAL SERVICES

MARKETING SOLUTIONS

MULTICHANNEL CONTENT

RESOURCES & SKILLS

RESOURCES & SKILLS

DIGITAL SERVICES

MARKETING SOLUTIONS

MULTICHANNEL CONTENT

Paid digital contentContent cooperationUse of group-level thematic content

Group-level multimedia service solutionsAudience targeted advertising and analyticsMobile and web-TV advertising

Alma Career business growth and synergiesBroadened offering for home market digital consumer servicesWidened revenue streams for digital business

Forerunner in digital business competenciesCross marketing and online traffic directionIT investments and harmonisation

Focus areas 2014

---

-

-

-

-

-

-

-

-

-

Spearheads for Digital Growth

BUSINESS

CAREER

LIFESTYLE

NEWS

DIGITAL CONTENT REVENUE

CAREER SERVICES

DIGITAL ADVERTISING

ONLINE TELEVISION